Hmmm... this might be a dumb idea but...
What if there was a process in place where users could vote to burn stolen BTSX or automatically transfer stolen BTSX to an insurance account? If 51% consensus is reached, the registered account could be flagged and any BTSX sent from the account would be automatically redirected into the insurance fund. In the event that the flagged account tries to distribute the stolen funds to other accounts, the other accounts could also flagged and fined based on the transaction amount.
I was thinking of something similar. For example if funds are stolen then these are burned as dividends or keep them in an insurance account.
But you cannot flag the account and the accounts that the stolen funds are redirected since the thief can start sending funds to everyone in order to further mess up with all the accounts and we end up hurting ourselves.
I am not in favor of a rollback either. what if in the meantime I make a huge deal with someone in bitusd and then we have a rollback and the other party realises that the deal he has done is not in his favor? we will lose credibility in case of rollback and no serious business is going to accept this if there is this possibility of an "undo" button.. I think NXT got really away because they didn't do the rollback. I believe that if they had done so they would in vericoin's position now.
I don't understand very much how these things work, but in case of a theft and if there is very good proof that this is actually a theft and delegates vote 70% that this is a theft can't we just freeze these money completely and decide later how to proceed? i.e could be burned as dividends, could be sent to a charity, could be used as insurance fund, or we just find the hacker and make him return the funds?
Very good arguments against a rollback.
It has changed my opinion. I'm now not in favor of a rollback because it could damage the currency features of certain BitAssets.
I think in the case of BitUSD a rollback could be very bad. At the same time it's likely at some point a hard fork is going to be necessary so how best to handle it smoothly with the least damage?
What to do in the situation of government confiscation of Bitshares? If governments confiscate 51% then we'd have to roll back.
I think as a way to distinguish our community from NXT it will be in our competitive advantage to decide against rollback functionality. If a time comes where we need it then we could just do it as a hard fork (in the case where governments confiscate Bitshares in an attempt to own it).
Suppose governments did start confiscating Bitshares? If the network could vote to burn the shares that would be a way out of it. But I don't really favor giving the network that kind of power. It's too dangerous.
Again it might not even be in our best interest to discuss this right now.